Which of the following has caused banks difficulty in estimating liquidity needs?
A) competition for loans from other financial institutions
B) deregulation of interest rate ceilings on deposits
C) competition for loans from nonfinancial institutions
D) a and b
E) a, b, and c

Question

Quizplus · Accepted Answer

All three factors, competition for loans from both financial and nonfinancial institutions and deregulation of interest rate ceilings on deposits, have contributed to banks' challenges in estimating liquidity needs. Competition increases the unpredictability of loan demand and deposit supply, while deregulation affects the cost of attracting deposits.

Which of the Following Has Caused Banks Difficulty in Estimating